Enrolled Bill Summary

            House Bill 1870 enacts the Texas Trust Company Act. The act includes a parity provision to the law governing trust companies, granting state trust companies the same rights and privileges that are granted to state or national financial institutions; allows trust companies to accept limited deposits; and grants the state banking department authority to supervise new accounts. It defines "insolvent" to include a trust company with equity capital less than $500,000, requires that trust companies maintain restricted capital of at least $1 million, disqualifies the director of a trust company for being party to an uncorrected breach of trust, and requires that the word "trust" be used by a person or company only with the approval of the banking commissioner. The act removes restrictions on the investment of secondary capital, but grants the banking commissioner authority to ensure trust company safety and soundness authority.